Galliford Try performing in line with expectations

Galliford Try performing in line with expectations

British construction and housebuilding company Galliford Try plc (LON: GFRD) posted a consistent sales rate for the full year and says their profits before tax remain in line with analysts’ expectations.

The Company says they will publish a full data set in September, but noted that it maintained its strong margin and continued to improve its customer satisfaction over the year ended 30 June 2019.

Galliford Try net debt stood at £60 million as of 30 June 2019, and average net debt was in line with previous full year guidance, at £187 million. The Company added that the results published in September would include the previously reported £40 million of ‘exceptional items’.

Galliford Try comments

Company Chief Executive, Graham Prothero, commented,

“The Group has continued to perform well, supported by good housing demand. We expect our full year results and average net debt to be in line with previous guidance.”

“We are making strong progress against the operational targets we set out in 2017.  We are reviewing our 2021 volume targets to ensure that growth is controlled, and our gearing is managed. Despite the weaker economic outlook, Linden Homes continues to see robust demand, with operating efficiencies driving strong margins and improving customer satisfaction. Partnerships & Regeneration is well on track with its aspirations for exciting growth in both revenue and margins, with some key wins in the period and further good opportunities across the market. We are pleased that the restructure of the Construction business is now complete.  The business is now firmly focused on its core strengths of regional building operations, together with profitable operations in highways and water, all of which are now performing effectively. I look forward to the next financial year with the appropriate strategic priorities in place across the Group.”

Investor notes

Following the update, the Company’s shares have rallied 5.97% or 36.5p during morning trading on Wednesday, up to 647.5p a share 17/07/19 10:44 BST. Peel Hunt analysts reiterated their ‘Add’ stance, while Liberum Capital analysts reiterated their ‘Buy’ rating on Galliford Try stock.

Elsewhere in property development and estate agency news, there have been updates from; Ashley House Plc (LON: ASH), Persimmon plc (LON: PSN), McKay Securities plc (LON: MCKS), MJ Gleeson PLC (LON: GLE), Somero Enterprises Inc (LON: SOM), Bovis Homes Group plc (LON:BVS) and Telford Homes plc (LON: TEF).